U.S. DDGS prices are down $4.25/MT this week as ethanol production continues to rebound from the February polar vortex that blanketed the Midwest. Additionally, logistics issues, particularly in the container market, are reducing truck demand. This combination of factors is pressuring DDGS values despite steady, strong demand from domestic users. FOB ethanol plant DDGS were quoted at $235-245/MT this week, putting the DDGS/cash corn ratio at 1.13, down from 1.19 last week and near the three-year average of 1.10. Similarly, the DDGS/Kansas City soymeal ratio fell slightly to 0.54, down from 0.55 the prior week but above the three-year average of 0.43.
The Mississippi River will open again soon, and brokers note this will likely allow ethanol plants in the Upper Midwest to add to the river supply. Exporters note Q2 export demand has been somewhat quiet in recent weeks and Barge CIF NOLA offers are down $9-11/MT for April/May while FOB Gulf offers are down $10/MT for April at $281. Indications for the container market are again spotty but are generally lower this week. This week’s offers for 40-foot containers to Southeast Asia are quoted at $338/MT for Q2 positions.